Bassett 1Q sales increase 5%; BFD store shipments up 22%
By Furniture Today Staff -- Furniture Today, March 27, 2005
Bassett, Va. — Bassett Furniture Inds. reported first-quarter sales of $80.8 million, an increase of 5% from the same period a year earlier.
Net income in the quarter ended Feb. 26 was $2.4 million, up a bit from $2.3 million a year ago.
But earnings were 50% higher than the adjusted profit a year earlier of $1.6 million, which excludes one-time charges and gains.
In sales, the company said growth was fueled by a jump of $9 million, or 22%, in shipments to Bassett Furniture Direct stores, and by greater demand for juvenile products. A $5 million decline in sales to traditional furniture stores partially offset those gains.
The Bassett Furniture Direct store program continued to grow, with 120 stores in operation at the end of the first quarter. Licensees opened seven stores during the quarter and three were closed. Bassett expects to open 20 to 25 BFD stores this fiscal year.
An improved sales mix in upholstery and imported products helped boost first-quarter margins, offsetting slight increases in selling, general and administrative expenses, primarily related to the introduction of the John Elway Home Collection.
"We are pleased with our year-over-year sales improvement as our Bassett Furniture Direct growth is now outpacing the expected attrition in our other distribution channels," said Rob Spilman, president and CEO.
"Our import and upholstery divisions continue to post strong sales and earnings improvement, and our investment portfolio had another strong quarter. Even though February was a strong month for us, business conditions continue to be fairly tough at retail, especially in certain parts of the country, including Texas," Spilman said.
"Our primary focus in 2005 continues to be improving every aspect of the BFD store program."
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Bassett 1Q sales up 5%
Mar 24, 2005
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